In this paper, we present a novel injection molding approach using water containing thermoplastic polyolefin (TPO) to reduce the cycle time and to improve the dimensional stability of parts without any equipment or mold modifications. A small amount of water was pressurized into TPO pellets pre-mixed with water carrier particles such as highly porous activated carbon or tubular-shaped nanoclay. Our results showed that the cycle time could be drastically reduced with substantially reduced surface sink mark and part warpage without any adverse effects on mechanical properties. Water evaporation during molding resulted in internal cooling, which led to a large reduction in cycle time. This phenomenon, however, could not be explained by the average water content in TPO alone. It is believed that the accumulation of water in the thickest section of the mold cavity, i.e., the base of the conical shaped sprue in the molds used in the study, during injection molding played a major role. The lower sink mark and part warpage were due to water induced internal cooling and foaming. Complete filling of thin parts could also be achieved at a lower packing pressure in the presence of water, perhaps due to steam (from water evaporation) induced mold cavity heating during filling. This was supported by the measured temperature rise at the mold surface in the early stage of the molding cycle.